If you have a few large debts but also have access to a large sum of cash, debt settlement may be a great debt relief option for you. Debt settlement is when you make a deal with collections to pay off your debt. Usually, some type of lump sum is needed to pay the debt, but the rest is erased.
When you do not make your loan payments on time, you are at risk of default. Once you hit a certain amount of time in this default status, collections take over your loans. The collection agency’s job is to try to get as much of the debt paid off as possible. Many collections are willing to make deals to get as much money as possible, which is why debt settlement is an option.
If your loan or loans are in collections, reach out to see if there are any debt settlement options for you. Usually, you can make a deal to pay off a portion of your loan for the rest to be paid by collections. This allows you to take care of your debt in a quick way.
If you are able to pay the lump sum provided to settle your debt, this can be a great way to have a clean slate. Having debt hanging over your head can make making other positive financial moves difficult. Debt settlement can be that push in the right direction.
